COMPARE · Data as of August 24, 2026
BHC vs MRK
Verdict: Side-by-side breakdown using the Bull Rankings model. BHC scored 71.3, MRK scored 37.3 — BHC leads.
Compare another set
BHC
Bausch Health Companies Inc.
71.3
$6.68 · $2.5B
fundamentals as of
Score gap
34.0
BHC leads
MRK
Merck & Co., Inc.
37.3
$150.66 · $371.7B
fundamentals as of
At a glance · who leads each dimension, on the model's own rules
- Fastest growthBHC+10.1%
- Highest qualityMRK65 / 100
- Largest discount to fair valueBHC-86%
Side by side · every name on one set of axes
The model, pillar by pillar (0–100 each)
BHC
stronger →← stronger
MRK
63
Qualityreturns · margins · balance sheet
65
64
Growthrevenue & earnings expansion
48
91
Valuevaluation vs sector peers
17
BHC is stronger on 2 of 3 pillars.
Fundamentals, head-to-head
BHC
MRK
$1.4bC+
FCF
$16.1bA-
+10.1%B
Rev
+4.6%C+
—
D/E
1.28C
0.2xA
P/S
—
0.01A
PEG
10.47D
—
P/E
121.5xD
Winner per row is the stronger grade; where grades tie, the better figure breaks it. A true tie or a missing value shows no highlight.
Valuation · DCF cross-check
BHC
MRK
86% below
Price vs fair valuelower is cheaper
1% below
decline
Growth the price implies10-yr FCF · lower = less priced in
~14%/yr
+677%
1-yr DCF upside
-23%
+599%
5-yr DCF upside
+1%
+504%
10-yr DCF upside
+52%
The DCF is a cross-check on intrinsic value, separate from the quality-growth score above.
Model signals
BHC
MRK
The companies
BHCBausch Health Companies Inc.
Why now
Drug Manufacturers - Specialty & Generic · market cap $2.5b. 17% off the 52-week high of $8.00. Revenue growing +10%, comfortably above the S&P median. PEG 0.01 — paying under fair value for the growth rate. 5 sell-side analysts publish a mean 1-yr target of $7.50 (implying +12% upside).
Moat
ROE 62% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. Pharma moat is patent runway + pipeline depth — a single approved molecule funds the next generation of bets. Late-stage trials carry binary readouts that swing valuation 30%+.
Risk
Currently unprofitable (margin -10.1%) — path to GAAP profitability is the core thesis risk. Trial-readout binary — late-stage clinical trials carry approve/reject outcomes that swing valuation 30%+; the equity is effectively a portfolio of these binary events, not a steady cash-flow business.
MRKMerck & Co., Inc.
Why now
Drug Manufacturers - General · market cap $371.7b. Trading near 52-week high of $154.49 — momentum setup, limited technical margin of safety. 26 sell-side analysts rate this a Buy with a mean 1-yr target of $147.77 (implying -2% upside).
Moat
Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong. $371.7b market cap places it among the largest companies in the sector — distribution, R&D, and customer-acquisition costs amortize across a base peers can't replicate. Pharma moat is patent runway + pipeline depth — a single approved molecule funds the next generation of bets. Late-stage trials carry binary readouts that swing valuation 30%+.
Risk
Trailing P/E 121.5x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. Trading within 2% of the 52-week high — limited technical margin of safety; a momentum reversal would test conviction. Net margin 4.8% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first.
Verdict — model-derived comparison
Generating verdict… typically 5–10 seconds
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Where BHC and MRK diverge
On the headline score the gap is 34.0 points in favor of BHC. The widest single difference is Value, where BHC leads by 74.0 points.
- ValueBHC 90.6 · MRK 16.6BHC +74.0
- GrowthBHC 63.7 · MRK 48.2BHC +15.5
- QualityBHC 62.9 · MRK 64.8level
Pillars run 0–100 against sector peers, so a score is a statement about a company relative to its own industry rather than to the other name here. A wide Value gap usually means the market already prices the difference in quality or growth — which is the trade-off this comparison comes down to.